The young and the rich: How to service up-and-coming HNW clients – Berkeley Alexander

by: Dave Probert, director – private clients, Berkeley Alexander

It’s generally accepted that within the next 10 years generation HENRY, which stands for high earners, not rich yet, will be one of the wealthiest, most successful economic sectors within the UK.

This is why any future marketing strategy by brokers within the wealth sector must take this group into consideration.

Equipping yourself with a detailed understanding of the profile of these clients is central to successfully targeting them.

High disposable income

Generally referred to as aspiring wealth, HENRYs are the young, well educated professionals who consider themselves middle class, with above average incomes, and clearly defined career paths, and they are the high net worth (HNW) consumers of the future.

At present they are likely to be city dwellers incurring the high costs of renting, while paying off university debt.

But make no mistake, they already enjoy a healthy level of disposable income that supports a busy social life, generally attending HNW events like Ascot, Cheltenham, Cowes Week and extensive travel.

They are tech savvy millennials and are the on-line generation who will expect to be contacted by text, email or even social media and will see technology as the normal means of communication rather than traditional letter or face-to-face meeting.

Be aware, HENRYs will do their research.

While they will be predisposed to take advice from a professional it will take time to build that relationship and they will do their own online research to corroborate advice initially until a level of trust has been established.

Building trust

Whether it’s mortgages, investments, financial advice or general insurance products, this customer will seek out a relationship with the provider who can deliver the services they will come to expect and in a way that suits their lifestyle.

It is the IFAs and brokers who take the time to invest in building a true specialist knowledge of the HNW sector who will reap the rewards.

For example, it is likely that these individuals will currently find specific cover for certain high value items such as an expensive 21st birthday watch, valuable bicycle, designer handbag or maybe even a diamond engagement ring.

But if they don’t currently use a specialist HNW broker for their general insurance, then they won’t be aware of consolidated products that can cover all of these on a bespoke basis.

It is areas like this where the broker can really add value and build trust.

First-class service demanded

One common denominator across all HNW individuals is the expectation of a first-class service, together with access to a range of quality products which will be as prevalent tomorrow as it is for today’s affluent customer.

Quality service though might be delivered differently for HENRYs; for example, for them quality service is unlikely to mean a lengthy application process face-to-face as it might have done for their parents or grandparents.

Insurance applications need to be slick and quick with minimal question sets.

Not every specialist HNW insurer will have this capability yet, although new innovations are being developed with exciting new insurtech business models and advances in applications like blockchain.

As intermediaries, understand your audience; provide tailored suitable products and services that are available on the right channels, and communicate and market to them in ways that resonate Then you have a recipe for success in this important HNW growth sector.

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